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FameEX Hot Topics | Mike Novogratz Suggests SEC Might Greenlight Bitcoin Spot ETF in Under Half a Year

2023-08-11 16:12:15

Galaxy Digital CEO Mike Novogratz has expressed optimism about the possibility of the U.S. Securities and Exchange Commission (SEC) approving a spot bitcoin exchange-traded fund (ETF) within the next four to six months. Novogratz's perspective is based on insights from contacts at Blackrock and Invesco, both of which have filed to launch bitcoin ETFs with the SEC.

During the Q2 earnings call of Galaxy Digital Holdings, Novogratz shared his views on the likelihood of the SEC giving the green light to the spot bitcoin ETF filings by Blackrock and Invesco. He indicated that both companies' indications suggest the question is not if, but when, the approval will come. He estimated a timeframe of four to six months, emphasizing that "the outside window is probably six months." Novogratz suggested that the approval process for a bitcoin ETF might take around that period.

Blackrock, in June, filed to establish a spot bitcoin trust ETF. The company's CEO, Larry Fink, stated that their intention is to democratize cryptocurrency and that he envisions crypto transcending any single currency. Novogratz highlighted the significance of Larry Fink's positive statements about bitcoin and the crypto world, especially considering Blackrock's immense influence as a $7 trillion asset manager. He noted the substantial shift in perspective, with Fink acknowledging bitcoin as the first global form of money.

The partnership between Invesco and Galaxy Digital, formed in September, aims to offer investors exposure to various products in the digital asset ecosystem. Analysts specializing in ETFs from Bloomberg have raised the likelihood of the SEC approving a spot bitcoin ETF in the U.S. to 65%.
Novogratz believes that once an ETF is approved, it will facilitate substantial inflows of capital into the crypto space. Such an ETF would provide a straightforward way for institutional and retail investors to allocate significant sums of money to the cryptocurrency market.

Overall, the sentiments expressed by Mike Novogratz, coupled with the efforts of major financial institutions like Blackrock and Invesco, indicate a growing acceptance and interest in cryptocurrency-related investment products, potentially setting the stage for increased mainstream adoption of digital assets.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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